by: scott kessler lpl financial smartcollegefunding.com lpl financial member finra/sipc

By: Scott Kessler

LPL Financial

SmartCollegeFunding.com

LPL Financial Member FINRA/SIPC

COLLEGE PLANNIN

G

Financial Aid Basics - HOPE

3.0 high school HOPE GPA across core academic subjects (evaluated by GSFC)

3.0 across ALL college courses attempted

Evaluated at the end of every Spring semester AND at 30, 60, and 90 attempted hours Can LOSE HOPE at any of these checkpoints Can only GAIN HOPE at 30, 60 and 90

attempted hoursLPL Financial Member FINRA/SIPC

Financial Aid Basics – Zell Miller ZELL MILLER SCHOLARSHIP ELIGIBILTY

Graduate as the valedictorian or salutatorian; OR

Graduate with a 3.7 GPA (as calculated by GSFC); AND 1200 on the math and reading portions of the SAT or 26 on the ACT – One test administration, not highest combined score

Must maintain 3.3 GPA across ALL college courses attempted

Evaluated at the end of Spring term AND at 30, 60, and 90 attempted hours


Financial Aid Basics

Common Requirements between HOPE and Zell Miller Scholarship

GA resident at high school graduation – must be GA resident for 12 months prior to receiving HOPE/ZMS in college

Not a GA resident at high school graduation – must be GA resident for 24 months prior to receiving HOPE/ZMS in college

Lose and Regain only ONE time Can lose ZMS and maintain HOPE eligibility if above 3.0

college GPA


Financial Aid Basics

Common Requirements between HOPE and Zell Miller Scholarship 127 Attempted Hour Limit

ATTEMPTED HOURS Hours of record after drop/add – “If it appears on the

transcript” Includes F grades and withdrawals

Seven Year Limit following high school graduation


We know why college matters

Bachelor’s degree holders earn $1 million more over a lifetime than high school graduates

By 2020, 75% of all U.S. jobs will require a degree beyond high school

Unemployment rates by educational level as of 5/2013 11.1% Less than high school diploma 7.4% High school, no college 6.5% Some college 3.8% College or greater


Graduation Rates

4 Year Graduation Rates Public Colleges 31% Private Colleges 53%

6 Year Graduation Rates Public Colleges 58% Private Colleges 65%


6 Year Graduation Rate - 2013

University of Florida

University of Georgia

University of So. Carolina

University of Tennessee

University of Arkansas

GCSU University of North

GA Georgia Southern

86.5%82.2%72.7%67.5%60.1%61.2%52.8%50.5%


www.collegeresults.org

Average Cost of College (COA) per College Board 2014-2015

Public University $23,410 per year

Private University $44,272 per year

Elite Private University $55,000+ per year


Paying for College

There are two very different prices for college:

one for the informed buyer & one for the uninformed buyer


Retail vs. Wholesale

When you fly do you pay the same as the person sitting next to you?

Which seat would you rather sit in?


Only$119!

I paid $369

Cost of Attendance (COA)

Includes direct costs to the college (tuition/fees)

Also includes indirect costs for related educational expenses Room/Board Books/Supplies Transportation Miscellaneous Living Expenses


Expected Family Contribution (EFC)

A measure of how much the student and his or her family can be expected to contribute to the cost of the student’s education for the year

EFC is calculated by a formula specified in federal law

Factors include but are not limited to: Assets Adjusted gross income Federal tax liability Number in household Number in college Student’s dependency status


Financial Aid Formula

COA (Cost of Attendance) - EFC (Expected Family Contribution) = FN (Financial Need)

The difference between the COA and EFC numbers is your “financial need” or eligibility for financial aid at a particular school.


Free Money

Scholarships &

Grants


Loans

Must be paid back Direct Loans (Stafford) - students PLUS - parents


Financial Aid Basics – Federal Programs

Free Application for Federal Student Aid (FAFSA)

www.fafsa.gov

The gateway for all Federal Student Aid programs Includes student and parent loan programs


http://www.fafsa.gov/

Financial Aid Basics – Loan Programs

Direct Subsidized Loans Gov’t pays interest while

student is enrolled in school at least half-time

Need-based 1.073% origination fee

withheld by US Dept. of Education prior to disbursement

2015-2016 Interest Rate is 4.29% (fixed)

Unsubsidized Direct Loans Interest accrues on loan

while student is enrolled in school

Student has option to defer or pay interest while in school

1.073% origination fee withheld by US Dept. of Education prior to disbursement

2015-2016 Interest Rate is 4.29% (fixed)


Annual Direct Loan Limits

Academic Annual Limit Additional Total AnnualLevel (Sub & Unsub) Unsub Limit Limit

Freshman$3500 $2000 $5500

Sophomore $4500 $2000 $6500

Junior/ $5500 $2000 $7500Senior


Aggregate (Lifetime) Direct Loan Limits

Status Subsidized Limit Combined LimitUndergraduate $23,000 $31,000Dependent

Undergraduate $23,000 $57,500Independent

Graduate $65,500 $138,000Student


PLUS Loan for Parents

Apply at www.studentloans.gov Origination Fee of 4.292% Interest rate for 2015-2016 = 6.84% Can borrow up to the Cost of Attendance

minus other aid Credit Check required


http://www.studentloans.gov/

Which University Is More Expensive?

COA $25,000 EFC -10,000 FN 15,000

Loan 5,000 Grant 2,000 Scholarship

6,000 Un-Met Need 2,000

Real $ Cost 17,000

COA $45,000 EFC -10,000 FN 35,000

Loan 3,000 Grant 12,000 Scholarship

20,000

Un-Met Need 0

Real $ Cost 13,000

University A University B


Where does your portion come from?

Savings account Checking account Money Markets Stocks Bonds Mutual Funds Students savings

529 plans UTMA/UGMA Life Insurance IRA 401K/403B Real Estate Annuities


Financial Aid

Requires the understanding of: Forms required by the school (FAFSA, Profile) Knowing your EFC Prudent planning strategies to increase

financial aid eligibility

Need to know: Average % of Financial Need met by the

university The university’s 4 and 6 year graduation rates


Planning

Effective planning for financial aid occurs before filing FAFSA/Profile – NOT AFTER!

DO NOT PROCRASTINATE! - Early planning gives you the best chance to position yourself for financial aid

Learn as much as possible about the financial aid process and seek out the assistance of experts in the field for guidance



Scott Kessler678.456.42

27scottkessler@outlo

ok.com

SmartCollegeFunding.com

by: scott kessler lpl financial smartcollegefunding.com lpl financial member finra/sipc

Documents